The article critically analyses the Internet of Things (IoT) and its intersection with cloud computing, the so-called Clouds of Things (CoT). ‘Things’ are understood as any physical entity capable of connectivity that has a direct interface to the physical world (i.e. a sensing and/or actuating capability). From another perspective (especially product liability), Things can be seen as an inextricable mixture of hardware, software, and services. Alongside a clarification of the essentials, the six factors of the CoT complexity are described and light is shed on the regulatory options (regulation, co-regulation, self-regulation, holistic approach, fragmentation). Focussing on the British legal systems, the article reports on the state of the art of CoT deployment in the United Kingdom and deals with some of the main technical and legal issues emerging from CoT. Particularly, the core will be data protection, privacy, and consumer law. Indeed, these themes are considered the most relevant by the regulators. By mastering the relevant legal issues and following the example of the United Kingdom, the Republic of Korea will be able to unleash its extraordinary potential as to the IoT, thus retaining its position as the smartest country in the world.
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